Delta Reports Financial and Operating Performance for July 2016

Published on : Tuesday, August 2, 2016

deltalogo_11431228Delta Air Lines today reported financial and operating performance forJuly 2016.

Consolidated passenger unit revenue (PRASM) for the month of July declined 7.0% year over year, consistent with the company’s expectations for the quarter.  This result was driven by continued close-in domestic yield weakness, the ongoing supply-demand imbalance in the Transatlantic, and headwinds from the company’s Yen hedge positions.

The company’s financial and operating performance is detailed below.

Preliminary Financial and Operating Results

July consolidated PRASM change year over year

(7.0)%

July mainline completion factor

99.7%

July on-time performance (preliminary DOT A14)

81.6%

Delta Air Lines serves nearly 180 million customers each year. In 2016, Delta was named to Fortune’s top 50 Most Admired Companies in addition to being named the most admired airline for the fifth time in six years. Additionally, Delta has ranked No.1 in the Business Travel News Annual Airline survey for an unprecedented five consecutive years. With an industry-leading global network, Delta and the Delta Connection carriers offer service to 335 destinations in 61 countries on six continents. Headquartered in Atlanta, Delta employs more than 80,000 employees worldwide and operates a mainline fleet of more than 800 aircraft. The airline is a founding member of the SkyTeam global alliance and participates in the industry’s leading transatlantic joint venture with Air France-KLM and Alitalia as well as a joint venture with Virgin Atlantic. Including its worldwide alliance partners, Delta offers customers more than 15,000 daily flights, with key hubs and markets including Amsterdam,Atlanta, Boston, Detroit, Los Angeles, Minneapolis/St. Paul, New York-JFK and LaGuardia, London-Heathrow, Paris-Charles de Gaulle, Salt Lake City, Seattle and Tokyo-Narita. Delta has invested billions of dollars in airport facilities, global products and services, and technology to enhance the customer experience in the air and on the ground.

Forward Looking Statements
Statements in this press release that are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections or strategies for the future, may be “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the estimates, expectations, beliefs, intentions, projections and strategies reflected in or suggested by the forward-looking statements.  These risks and uncertainties include, but are not limited to, the cost of aircraft fuel; the impact of rebalancing our hedge portfolio, recording mark-to-market adjustments or posting collateral in connection with our fuel hedge contracts; the availability of aircraft fuel; the effects of terrorist attacks or geopolitical conflict; the possible effects of accidents involving our aircraft; the restrictions that financial covenants in our financing agreements will have on our financial and business operations; labor issues; interruptions or disruptions in service at one of our hub or gateway airports; disruptions or security breaches of our information technology infrastructure; our dependence on technology in our operations; the effects of weather, natural disasters and seasonality on our business; the effects of an extended disruption in services provided by third party regional carriers; failure or inability of insurance to cover a significant liability at Monroe’sTrainer refinery; the impact of environmental regulation on the Trainer refinery, including costs related to renewable fuel standard regulations; our ability to retain management and key employees; competitive conditions in the airline industry; the effects of extensive government regulation on our business; the sensitivity of the airline industry to prolonged periods of stagnant or weak economic conditions; uncertainty in economic conditions and regulatory environment in the United Kingdomrelated to the likely exit of the United Kingdom from the European Union; and the effects of the rapid spread of contagious illnesses.

Additional information concerning risks and uncertainties that could cause differences between actual results and forward-looking statements is contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2015 and our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2016.  Caution should be taken not to place undue reliance on our forward-looking statements, which represent our views only as ofAug. 2, 2016, and which we have no current intention to update.

 

Monthly Traffic Results (a)

Year to Date Traffic Results (a)

July 2016

July 2015

Change

July 2016

July 2015

Change

RPMs (000):

Domestic

12,427,419

12,203,104

1.8%

76,272,256

73,052,397

4.4%

Delta Mainline

10,572,602

10,291,665

2.7%

64,211,382

60,961,185

5.3%

Regional

1,854,817

1,911,439

(3.0%)

12,060,874

12,091,212

(0.3%)

International

8,726,177

8,702,193

0.3%

49,010,342

48,828,728

0.4%

Latin America

1,831,957

1,805,937

1.4%

12,468,954

11,803,174

5.6%

Delta Mainline

1,781,201

1,770,720

0.6%

12,122,750

11,579,977

4.7%

       Regional

50,756

35,217

44.1%

346,203

223,197

55.1%

Atlantic

4,743,845

4,637,013

2.3%

22,976,541

22,975,377

0.0%

Pacific

2,150,375

2,259,243

(4.8%)

13,564,848

14,050,177

(3.5%)

Total System

21,153,597

20,905,297

1.2%

125,282,599

121,881,125

2.8%

ASMs (000):

Domestic

14,350,955

13,777,995

4.2%

89,675,606

85,075,138

5.4%

Delta Mainline

12,109,575

11,498,826

5.3%

74,568,491

70,021,319

6.5%

Regional

2,241,380

2,279,169

(1.7%)

15,107,116

15,053,819

0.4%

International

9,925,419

9,994,532

(0.7%)

58,718,380

59,231,340

(0.9%)

Latin America

2,025,063

2,038,284

(0.6%)

14,751,975

14,290,935

3.2%

Delta Mainline

1,967,299

1,998,394

(1.6%)

14,322,257

14,003,946

2.3%

       Regional

57,764

39,890

44.8%

429,717

286,989

49.7%

Atlantic

5,526,327

5,407,534

2.2%

28,513,506

28,451,556

0.2%

Pacific

2,374,029

2,548,714

(6.9%)

15,452,899

16,488,849

(6.3%)

Total System

24,276,374

23,772,527

2.1%

148,393,986

144,306,478

2.8%

Load Factor:

Domestic

86.6%

88.6%

(2.0)

pts

85.1%

85.9%

(0.8)

pts

Delta Mainline

87.3%

89.5%

(2.2)

pts

86.1%

87.1%

(1.0)

pts

Regional

82.8%

83.9%

(1.1)

pts

79.8%

80.3%

(0.5)

pts

International

87.9%

87.1%

0.8

pts

83.5%

82.4%

1.1

pts

Latin America

90.5%

88.6%

1.9

pts

84.5%

82.6%

1.9

pts

Delta Mainline

90.5%

88.6%

1.9

pts

84.6%

82.7%

1.9

pts

       Regional

87.9%

88.3%

(0.4)

pts

80.6%

77.8%

2.8

pts

Atlantic

85.8%

85.8%

0.0

pts

80.6%

80.8%

(0.2)

pts

Pacific

90.6%

88.6%

2.0

pts

87.8%

85.2%

2.6

pts

Total System

87.1%

87.9%

(0.8)

pts

84.4%

84.5%

(0.1)

pts

Mainline Completion Factor

99.7%

99.9%

(0.2)

pts

Passengers Boarded

17,109,491

17,103,034

0.0%

107,372,749

103,754,353

3.5%

Cargo Ton Miles (000):

170,014

192,859

(11.8%)

1,140,096

1,285,696

(11.3%)

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